Lululemon Athletica (LULU) - Get Report shares are flat Wednesday as investors prepare for the company's earnings on Thursday after the close. 

"I don't like the fact that so many people have come out and said that things are better," TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said from the floor of the New York Stock Exchange.

When expectations are high and the stock rallies, it could set investors up for disappointment, Cramer said. 

Still, Cramer does like Lululemon and has held that stance throughout this year. That's been a good call, and shares are up almost 50% in 2016 alone. 

The company has a very good lineup of clothing, Cramer said. With other mall-based retailers -- including L Brands (LB) - Get Report , Urban Outfitters (URBN) - Get Report and Children's Place (PLCE) - Get Report -- doing well, Cramer said he suspects Lululemon will report a good quarter as well. 

Cramer said he is intrigued the yoga apparel company is going from "women to all" in its product lines. With a men's lineup in the mix, Lululemon has an entirely new market. The company has also vastly improved its supply chain management. 

Nike (NKE) - Get Report should have bought Lululemon when it had the chance, Cramer concluded. 

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.